Regarding the former, CEO Sebastian Wojciechowski said that Square Enix had not presented a “draft of the subsequent content rider to the Publishing Agreement covering the terms and conditions of further milestones on Project Gemini and the lack of communication from the Publisher as to its willingness to continue or terminate the Gemini project.”

This affected Project Bifrost in turn, though Wojciechowski notes the Group’s cash flow showed “a lack of prospects for securing organizational resources and funds necessary to continue the production and release of this project.” People Can Fly must thus “significantly regroup as a studio and scale down our teams.”

“We wish to express our deepest regret and sadness over how these events have unfolded and our sincere gratitude for everyone’s contribution up to this point,” said Wojciechowski. The studio previously worked with Square Enix on Outriders, a sci-fi third-person looter shooter for PS4, PS5, Xbox Series X/S, Xbox One and PC.

The publisher announced over 3.5 million players less than two months after launch, calling it the “company’s next major franchise.” However, People Can Fly revealed that it failed to turn a profit roughly a year later, resulting in no royalties earned.

People Can Fly still has other projects in the works, including Gears of War: E-Day alongside The Coalition and an unannounced title for Sony based on a PlayStation IP.